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Ladies, listen up: On average, women are living around seven years longer than men. This not only means females require more retirement income, but also increases the odds of needing long-term care. According to a 2004 AARP study, over 70 percent of nursing home residents were women. While the stats alone show how imperative long-term care planning is – ladies, here are some additional aspects you most certainly want to consider:
📌Ability to pay: The average monthly cost of a private room in a nursing home facility is $8,821. Add that up over the course of a few years and the number can skyrocket.
📌Medicare and Medicaid: Navigating these government programs can be complicated, which is why working with a trusted professional is key. One program might cover one thing, while the other might not.
📌Run the projections: What happens if one spouse passes early? What if the other lives past 100? Going through what-if scenarios in your retirement plan will help ensure you’re prepared.
📌Analyze your options: For women who have a high retirement success rate with long-term care costs included, self-insuring through a designated long-term care investment account is an option. For women with a modest degree of retirement success, a combination of self-insuring and purchasing a policy might be wise. It all depends on your unique situation.
📌Other planning implications: Consider when to draw Social Security benefits and how it might help long-term care costs – and – ensure you have an appointed Power of Attorney who can coordinate long-term care on your behalf if needed.
Get to planning: There’s a myriad of ways to solve for your long-term care risks. Don’t just put your head in the sand. You might be able to do more than you think.